Karnataka High Court
M/S Mahalakshmipura Sri Vasavi Credit ... vs Mr Venkateshwara S on 26 November, 2025
Author: S Vishwajith Shetty
Bench: S Vishwajith Shetty
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CRL.P No. 5299 of 2025
HC-KAR
IN THE HIGH COURT OF KARNATAKA AT BENGALURU
DATED THIS THE 26TH DAY OF NOVEMBER, 2025
BEFORE
THE HON'BLE MR. JUSTICE S VISHWAJITH SHETTY
CRIMINAL PETITION NO. 5299 OF 2025
BETWEEN:
M/S MAHALAKSHMIPURA SRI VASAVI CREDIT
CO OPERATIVE SOCIETY LTD.,
HAVING ITS OFFICE AT
NO.18(328) 11TH CROSS,
MAHALAKSHMI LAYOUT,
BENGALURU - 560 086.
REPRESENTED BY ITS DIRECTOR
MR PRASANNA KUMAR K R
...PETITIONER
(BY SRI. GAURAV GANAPATHY.C.G., ADVOCATE FOR
SRI.ANAND MUTTALLI., ADVOCATE)
AND:
MR VENKATESHWARA S,
R/AT NO 37, 4TH BLOCK,
7TH MAIN, NANDINI LAYOUT,
Digitally BENGALURU - 560 096.
signed by ...RESPONDENT
KAVYA R (BY SRI.J.R.MOHAN., ADVOCATE)
Location: High
court of
Karnataka THIS CRL.P IS FILED U/S 482 CR.PC (FILED U/S 528
BNNS) PRAYING TO SET ASIDE THE IMPUGNED ORDER DATED
01.03.2025 PASSED BY THE LXI ADDITIONAL CITY CIVIL AND
SESSIONS COURT AT BENGALURU (CCH- 62) IN
CRL.A.NO.289/2025 WHEREIN THE SESSIONS COURT
DIRECTED THE RESPONDENT TO DEPOSIT 5% OF THE FINE
AMOUNT AND SUSPENDED THE SENTENCE PASSED BY THE
TRIAL COURT, CONTRARY TO THE MINIMUM OF 20% AS
ENUMERATED UNDER SECTION 148(1) OF THE NEGOTIABLE
INSTRUMENTS ACT, 1881.
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CRL.P No. 5299 of 2025
HC-KAR
THIS PETITION, COMING ON FOR ADMISSION, THIS DAY,
ORDER WAS MADE THEREIN AS UNDER:
CORAM: HON'BLE MR. JUSTICE S VISHWAJITH SHETTY
ORAL ORDER
The complainant is before this Court in this criminal
petition filed under Section 528 of BNSS, 2023 assailing
the Order dated 01.03.2025 passed in Crl.A.No.289/2025
by the Court of LXI Additional City Civil and Sessions
Judge at Bengaluru to the extent it relates to directing the
respondent herein to deposit 5% of the fine amount while
suspending the order of sentence dated 02.12.2024
passed against him in C.C.No.27340/2023.
2. Heard the learned counsel for the parties.
3. Respondent herein was convicted for offence
punishable under Section 138 of the Negotiable
Instruments Act, 1881 by the Court of XXXVIII Additional
Chief Judicial Magistrate, Benglauru in C.C.No.27340/2023
by Judgment and Order dated 02.12.2024 and as against
the same the respondent herein had filed
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Crl.A.No.289/2025 before the Court of LXI Additional City
Civil and Sessions Judge at Bengaluru and in the said
appeal he had filed I.A.No.2 with a prayer to suspend the
order of sentence passed against him in
C.C.No.27340/2023 during the pendency of the appeal.
The Appellate Court vide the order impugned has
suspended the order of sentence passed against the
respondent in C.C.No.27340/2023, subject to certain
conditions and being aggrieved by the condition directing
the respondent to deposit 5% of the fine amount before
the Trial Court, the petitioner is before this Court.
4. Learned counsel for the petitioner submits that
respondent has misled the Appellate Court by making a
false submission that petitioner had also filed a similar
case against his wife which is totally a incorrect statement.
He submits that Appellate Court was not justified in
directing the respondent to deposit 5% of the fine amount.
The respondent is a habitual offender who has been
convicted in multiple cases of similar nature.
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5. Per contra, learned counsel for the respondent
has argued in support of the impugned order. He submits
that he has got a good case on merits and appreciating
the same the Appellate Court having assigned cogent
reasons has directed the respondent to deposit 5% of the
fine amount. He submits that depositing 20% of the fine
amount as provided under Section 148(1) of the
Negotiable Instruments Act is not mandatory and it can
always be relaxed or reduced by the Courts depending
upon the facts and circumstances of the case. Accordingly,
he prays to dismiss this petition.
6. Perusal of the material on record would go to
show that the respondent herein allegedly had issued a
cheque for a sum of Rs.1,07,19,759/- towards discharge
of his legally recovery debt and the said cheque was
dishonored by drawer bank. It is under these
circumstances, petitioner herein had initiated proceedings
against the respondent in C.C.No.27340/2023 for the
offence punishable under Section 138 of Negotiable
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Instruments Act and in the said proceedings the
respondent was convicted and sentenced to pay fine of
Rs.2,00,00,000/- and in default was sentenced to undergo
simple imprisonment for a period of 2 years.
7. The Appellate Court having appreciated that the
Trial Court had sentenced the respondent to pay fine
which is nearly double the cheque amount, has exercised
its discretion and has directed the respondent to pay 5%
of the fine amount though Section 148(1) of Negotiable
Instruments Act provides that a minimum of 20% of the
fine or compensation awarded by the Trial Court shall be
directed to be deposited in an appeal filed by the accused
who is convicted for offence punishable under Section 138
of the Negotiable Instruments Act. The Hon'ble Supreme
Court in the case of JAMBOO BHANDARI VS.
M.P.STATE INDUSTRIAL DEVELOPMENTN reported in
(2023) 10 SCC 446 has held that in appropriate case,
the Appellate Court, if satisfied that the condition of
deposit of 20% will be unjust or imposing such a condition
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will amount to deprivation of the right of appeal of the
appellant, exception can be made for the reasons
specifically required. In the case on hand, the reason
assigned by the Appellate Court for reducing the deposit
amount from 20% to 5% is that the Trial Court had
imposed fine to the tune nearly double the cheque, if that
is so, the Appellate Court ought to have directed the
respondent/accused to at least deposit 10% of the fine
amount and therefore in my considered opinion, the
Appellate Court was not justified in directing respondent to
deposit 5% of the fine amount. Accordingly, the
following:-
ORDER
(i) The criminal petition is partly allowed.
(ii) The Order dated 01.03.2025 passed on I.A.No.2
in Crl.A.No.289/2025 by the Court of LXI Additional City
Civil and Sessions Court at Bengaluru to the extent it
relates to directing the respondent herein/accused to
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deposit 5% of the amount before the Trial Court is set
aside and in turn the respondent/accused is directed to
deposit 10% of the fine amount before the Trial Court. At
this juncture a submission is made on behalf of the
respondent/accused that 5% of the fine amount as
directed in Crl.A.No.289/2025 is already deposited before
the Trial Court and for depositing the balance 5% of the
fine amount, he may be granted 6 weeks' time.
(iii) Said submission is placed on record.
(iv) The respondent/accused is granted 6 weeks' time
from today to deposit the balance 5% of the final amount
before the Trial Court
(v) All other conditions found in the order impugned
remain unaltered.
Sd/-
(S VISHWAJITH SHETTY)
JUDGE
KVR
